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Annual Report

KRISHI: Publication and Data Inventory Repository

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Title Annual Report
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The National Institute (earlier Centre) of
Agricultural Economics and Policy Research
(NIAP) continued its efforts towards achieving
excellence in agricultural economics and policy
research in the country. The Institute serves as
a policy think tank and helps the ICAR through
credible evidence-based feedback to actively
participate in agricultural policy debates and
decisions and in monitoring and interpreting
the research impacts systematically. The
Institute sensitizes policy planners and
research administrators about the emerging
changes and concerns related to farmers and
farming. Besides, the Institute also provides
policy inputs to several other public sector
bodies, departments, ministries and state
governments.
The staff of the Institute comprised of
16 scientists, 17 other staff members and the
research project staff. The total expenditure
of the Institute, including that from external
sources was ` 817.75 lakh during the year
2014-15.
A high-powered Research Advisory
Committee led by Prof. S. Mahendra Dev,
distinguished economist and Director (Vice
Chancellor), Indira Gandhi Institute of
Development Research (IGIDR), Mumbai,
guides the Institute on its research programmes,
and a Management Committee administers
its overall functioning. Besides, a number of
internal committees like academic planning and
policy committee, publication committee, budget
committee, purchase committee, etc. facilitate
decentralized management of the Institute.
Research studies of topical importance are
conducted at the Institute under five broad
themes, viz. technology policy, sustainable
agricultural systems, markets and trade,
institutional change, and agricultural
growth and modelling. Each broad theme
is supervised by a senior faculty. Research
programmes within and across themes are
so designed as to achieve the mandate of
the Institute. During the year 2014-15, the
Institute undertook 16 research projects
and completed one consultancy project. The
Institute has not only maintained but also
increased the linkages and collaborations with
many institutions in India and abroad. The
Institute organized a number of workshops,
trainings and policy advocacy programmes.
The main research achievements and a
glimpse of other activities undertaken by the
Institute during 2014-15 are given below:
• Agricultural diversification towards highvalue
crops (HVCs) is considered as one
of the alternatives to increase income,
generate employment and reduce poverty.
Study on crop diversification revealed that
the likelihood of a farmer being poor is 3-7
per cent less if he grows HVCs. The biggest
impact of HVCs on poverty is assessed for
smallholders having landholding less than
or equal to 2 hectares. Estimates show that
higher the degree of diversification, lower
is the probability of a household being
poor.
• Indian agriculture has become more
knowledge intensive over past one decade.
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national institute of agricultural economics and policy research
The role of information in meeting knowledge
intensive agriculture is more pertinent
in view of increasing commercialization,
changing demand pattern, climate change,
stress on natural resources, etc. Farmers not
only needed improving farm productivity
and conserving natural resources but
to comply with market preferences for
safe and quality food also. The study has
shown that about 28 per cent of farmers
in India use information on modern
crop technologies and practices. About
information sources, analysis revealed that
government sources are used by 14 per
cent of the farm households, and they meet
rest of their information needs from social
networks (29%), mass media (33%) and
private sources (23%).
Farmers who use information on modern
farm practices realize 12 per cent or
more net returns per hectare. The impact
is significantly higher (17%) for farm
households growing cash crops along with
the food grains than for those who grow
only food grains. These findings are crucial
for policy decisions regarding information
dissemination. The policy should aim at
developing mechanism for information
dissemination in such a way that there
is a greater uptake of information by the
farmers. Study also observed that the
public investment in extension services
has not kept pace with the rising demand
for information in agriculture. About 12
per cent higher net income per hectare for
users adds ` 1140 per hectare of cropped
area (at 2002-03 prices). This suggests that
underinvestment in public extension may
limit realization of the potential increases
in agricultural productivity from spending
more on agricultural research.
• The quality of information is essential to
improving productivity. The preliminary
results of a study on livestock services in
Haryana has revealed that public sector
service providers are more qualified
and experienced than the private service
providers. Their impact on livestock
productivity is yet to be assessed.
• A study on impacts of climate change
on yields of major crops revealed that
1 °C rise in the maximum temperature
in kharif season reduces the yield of rice,
sorghum and pigeon pea by 11-12 per
cent and of maize and groundnut by 9
per cent. However, the effect of a similar
increase in the minimum temperature is
opposite but is not sufficient enough to
fully compensate the loss due to rise in
maximum temperature. The yield loss due
to maximum temperature has been found
considerable in the case of wheat, but the
net effect after accounting for the positive
effect of rise in minimum temperature
remains significant (5.9%). The marginal
effect of 1 °C rise in minimum temperature
on yield of rapeseed-mustard is positive
and almost equivalent to the negative
effect of a similar increase in the maximum
temperature.
The marginal effect of rainfall on kharif
crops, except maize, has been found positive
and significant. However, in the rabi season
its effect was not significant, except on
rapeseed-mustard where it was negative
and significant. The non-significant effect
of rainfall in the rabi season is expected
as the quantum of rabi rainfall is not only
less but more variable also. In general, the
marginal effect of rainfall is much smaller
than of temperature. These results suggest
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ANNUAL REPORT 2014-15
that the climate change impact on Indian
agriculture will be largely driven by
temperature change.
• Analysis of total factor productivity change,
technical efficiency change and technical
change in production of rapeseed and
mustard in major growing states revealed
that the mean (states) TFP increased at the
rate of 3 per cent during 1994-95 to 2011-12.
The technical efficiency has increased at the
rate of 2.24 per cent and technical change at
the rate of 1.9 per cent.
• A study on regional crop planning for
Punjab state showed that sugarcane and
paddy (basmati) are the most profitable
crops to be grown considering market
price situation. These two crops remain
most profitable even when input subsidies
are removed and environment effect of
crop cultivation is monetised and included
in cost and returns. It was found that rice
in kharif and wheat in rabi enjoy strong
technological advantage over other crops
besides stable market and input subsidy
benefits. The study observed that pricing
of power and fertilizer at economic prices
is not likely to shift area under wheat and
paddy but it will reduce irrigation water
use significantly.
• A study on performance of rainfed
agriculture at national level revealed that
yields of crops during 1990s improved but
at a higher cost. The increase in cultivation
cost was higher in traditional rainfed crops
compared to water intensive crops like
paddy and sugarcane. The study suggests
for increased investment in rainfed areas
for water conservation and improving
water use efficiency for sustainable crop
production.
• Continuance of rice-wheat cropping
pattern in Punjab has led to severe decline
in groundwater table in recent years and
requires an optimum crop plan that could
be sustainable and profitable for farmers.
If use of groundwater is restricted to
replenishable level then optimum cropping
pattern dictate large area in kharif season
to be kept fallow. Optimum crop plan for
rabi crops suggested no change in existing
cropping pattern and only minor reduction
in area under maize crop. Following
the optimum crop plan of sustainable
groundwater use, net returns from crop
sector reduces by about one-third. The
optimum crop plans indicate that reduction
in farmers’ net income due to removal of
subsidies will be much lower than the cost
borne by society.
• The study on groundwater use in Punjab
indicated drastic decline in water table
especially during the recent years. Among
different crops, paddy emerged as the most
water- guzzling crop and farmers give more
than 50 per cent higher groundwater than
the optimum level for its cultivation. The
average cost of groundwater extraction in
Punjab was estimated as ` 0.46 per cubic
meter (cum) and farmers pay almost half
of the groundwater irrigation cost even
in case of free electricity supply by the
government. The groundwater extraction
cost was found to be varying directly with
the decline in water-table and inversely
with the size of land holdings. The study
further shows that removal of power and
diesel subsidy would make crop production
comparatively less profitable but may not
alter the dominance of paddy-wheat sysetm
which enjoys high level of policy as well
technological edge over other crops.
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national institute of agricultural economics and policy research
• In other study on Women Empowerment
in Agriculture Index (WEAI) was done in
Rupnagar district of Punjab state. Study
revealed that 31 per cent of farm women are
empowered having WEAI score of 0.815.
Control over income, use of production
resources and proper time management
are the factors contributing towards their
empowerment.
• The network project on market intelligence
intended to provide price forecasts to farmers
on selected agricultural commodities as
to enable them take informed production
and marketing decisions. Price forecasts
for major agricultural commodities are
disseminated to farmers before sowing
and during harvest so that farmers can take
benefits from possible price forecasts. So
far 129 forecasts have been generated and
provided to farmers. The predicted prices
have been found close to the actual market
prices in most cases.
• A comparison of value chains for milk
between formal and informal sector was
made considering aspects of efficiency,
inclusiveness and financing mechanism.
Study revealed that majority of smaller
dairy farmers use informal channels
(vendors and consumers) for selling
milk, while large dairy farmers prefer
selling milk to formal channels including
cooperatives, multinational and domestic
private processors. Study further revealed
that small dairy farmers are also supplying
to formal sector value chains as processors
cannot heavily rely on few large farmers.
Study showed that price difference was
not significant indicating milk markets in
Punjab are competitive, though the food
safety standards are more associated with
formal markets. Analysis showed that
more than half of the dairy farmers borrow
credit from formal and informal financial
institutions. Chain-based financing is
available to less than one-third of farmers.
• Establishing processing unit for mango
pulp requires substantial investment and
working capital. The study on financing
of value chains for mango pulp industry
in Andhra Pradesh revealed that about 55
per cent units require finance as working
capital and 27 per cent require assistance
for both working capital and term loan.
Commercial banks and private sector
banks are the main source of finance
for establishing processing units. Study
revealed that mango processers are facing
challenges due to middlemen menace,
post-harvest losses, poor profitability
and seasonality of processing activity.
Other challenges facing mango processors
include high perishability, lack of postharvest
infrastructure and standardized
supply-chain system.
• The trend in sectoral employment showed
that the rural labour market is undergoing
profound changes. Despite increase in
the total rural workforce during 1993-
94 to 2011-12, workforce in agriculture
declined during 2004-05 to 2011-12. This
decline in labour force was primarily due
to withdrawal of female workers from
agriculture. Moreover decline in female
workforce was not accompanied by
increase in female workers in non-farm
sectors. Among the main factors, high
wage rates and labour productivity in nonfarm
sectors were the drivers of labour
shift from agriculture to non-agriculture.
A changing work culture and the emerging
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ANNUAL REPORT 2014-15
contractual arrangements between labour
and its hiring households are also affecting
the rural labour market. The improvement
in education and skills of large uneducated
and unskilled rural labour will further
change occupation structure of rural labour
force.
• Analysis showed that labour productivity
in agriculture increased with increase in
labour absorption in most crops during
TE 1975-76 to 1995-96, while after mid-
1990s, per hectare labour use has shown
mixed trends. It declined in majority of
the crops, but increased in paddy in West
Bengal and cotton in Gujarat and Punjab.
Study revealed that productivity of labour
in agriculture has been higher than decline
in labour use per unit of area during past
15 years.
• A study on agricultural diversification
indicates that Indian agriculture is
diversifying towards horticultural crops.
The speed of diversification accelerated
after 2005-06 as compared to period 1995-
96 to 2005-06. The growth in horticulture
output showed twice the growth rate of all
crops and non-horticultural crops, except
cotton. This could happen due to very high
differential in productivity of horticultural
crops relative to non-horticultural crops
and high demand for horticultural crops.
Price trend evinced that prospects for
demand-led growth of horticultural crops
are very high.
• Study on farm income and agrarian crisis
showed that during two decades since
1983-84, the growth in income of farmers
and farm labourers could not keep pace
with growth in income earned by the nonfarm
workers. However, in recent years, the
income gap has been narrowing. Growth
rate in farm income is found to be closely
associated with number of farmers’ suicides.
The study observed that after 2004, number
of farmers suicides declined and growth
rate in farmers’ income accelerated.
• A study on employment diversification
in rural India and the role of non-farm
sector in altering the economic and social
life of rural people revealed that between
1993-94 and 2011-12, employment share
declined by 20 per cent for crop sector
and by 48 per cent for livestock sector,
while the share of non-farm sectors in
rural employment increased substantially
(83%). Analysis further revealed that nonfarm
employment was higher for marginal
and small farmers compared to large
farmers. Notably, construction activity was
attracting more number of workers than
other non-farm activities after 2004-05.
Its share in non-farm sector is bulging at
the cost of other sectors such as trade and
hospitality, community, personal and social
services. The main factors determining
non-farm employment includes age and
gender, education of household head and
size of households.
• The study on consumption of livestock
products (milk, eggs, meat) for improving
food and nutritional security revealed
that cereals consumption, a predominant
contributor of total nutritional intake, is
declining over the years. Any reduction
in cereals consumption is bound to be
reflected in nutritional impoverishment if
it is not accompanied by sufficient large
increase in non-cereals food, particularly
livestock products which are high in calorie
and protein. Temporally, the share of
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national institute of agricultural economics and policy research
livestock products in total calorie (protein)
intake as well as their supply increased
during the past 16 years (1993-94 to 2009-
10). Further, livestock products are better
source of nutrients supply during drought
conditions and relatively stable prices than
other products make them a preferred
commodity.
• The Institute organised a number of
training programmes to achieve the
objective of capacity development of
scientists in ICAR institutions and state
agricultural universities (SAUs) and project
staff. Besides, NIAP conducted two oneweek
training programmes on ‘core issues
in the agricultural sector’ for the officers
of Indian Economic Services. The several
other short-term project-wise trainings,
interaction meetings, workshops, etc. were
also organized which helped in capacity
building of the project partners.
• The website of NIAP available at http://
www.ncap.res.in has been redesigned
and regularly updated. The Institute
publications are now available in the
PDF format and can be downloaded.
Data revealed that policy briefs, working
papers and policy papers were the most
referred publications during the year. The
faculty at NIAP published 32 research
papers in leading journals of national and
international repute and contributed 16
book chapters/ popular articles. More than
12 presentations were made in national and
international conferences. The scientists of
the Institute were involved in a number of
professional and policy interactions and
projects.
• Faculty of NIAP have played a major role in
creating proper perception and awareness
among public on various agricultural issues
through public debates and newspaper
reporting. In total 11 policy inputs were
provided to various Ministries by the
Institute. Director NIAP Chaired important
high-level committees constituted by the
Government of India on price policy, WTO
and Trade during the reporting year
Not Available
 
Date 2016-12-01T06:49:19Z
2016-12-01T06:49:19Z
2015-05-01
 
Type Annual Report
 
Identifier Not Available
Not Available
http://krishi.icar.gov.in/jspui/handle/123456789/752
 
Language English
 
Relation 2014-15;
 
Publisher Not Available